West Texas Intermediate fell from a two-year high as the prospect of imminent attacks on Syria receded and as better-than-expected U.S. economic data raised speculation that the Federal Reserve will taper its stimulus.

Prices dropped 1.2 percent as the U.K. and France said they favor waiting for the results of a United Nations investigation into Syria’s alleged use of chemical weapons. The U.S. economy expanded at a faster pace in the second quarter and first-time jobless claims fell more than forecast last week, adding to concern the Fed will reduce its $85 billion monthly bond buying in September.

“Oil is taking out some of the immediate attack-risk premium in the market,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. “The market is recalibrating when that attack may happen. The U.S. economy is getting better and that increases the odds of a September tapering.”

WTI for October delivery declined $1.30 to settle at $108.80 a barrel on the New York Mercantile Exchange. The volume of all futures traded was 22 percent below the 100-day average for the time of day at 2:33 p.m. The contract climbed to $110.10 yesterday, the highest close since May 3, 2011. Prices are up 3.6 percent this month.